7 Examples of Successful Family Business Succession

Sep 5, 2013

Famous CEO Bloodlines, Like Father, Like Son

From the trend of events, it seems that some families have leadership abilities in the family line hence, the succeeding generations are trained to take over the reins of the family legacy as far as the business is concerned. The question is, are these bloodlines CEO as successful as the founding fathers?

Research has revealed that family businesses form 35% of the Fortune 500 companies, 50% of US GDP, 60% of new employment and 78% of new job creation. Today, several successful business leaders were trained by their families to handle the family business as far as leadership is concerned. We take a look at these companies and compare the progress rates across different areas.

1. Concast: Founded by Ralph Roberts and taken over by his son Brian Roberts who is the current CEO, the company experienced a 63% growth during the present CEO;s tenure between 2002 and 2013. The son made a success of the company.

2. Hess: With present CEO of John Hess and founding gather as Leon Hess, the company experienced a growth of 371% between 195 and 2013 under the leadership of the present CEO.

3. Aflac: Daniel Amos, the present CEO was a son to the founder, Paul Amos served as CEO between 190 and 2013. Aflac has experienced growth of over 2,570 under the tenure of the present CEO, the son.

4. Leows (Hotels and Resorts): The company was co-founded by Laurence Tisch and taken over by Jams Tisch the son. Between 1999 and 2013, the company experienced 148% in company growth under the leadership of the present CEO.

5. Family Dollar: This company was founded by Leon Levine and taken over by Howard Levine. Between 2003 and 2013, under the leadership of the present CEO, the company has experienced 79% of growth.

6. Cablevision: The company was started by Charles Dolan and taken over by his sone James Dolan who serves as the present CEO. Between 1995 and 2013, cablevision has experienced a 37% growth under the leadership of the present CEO.

7. McGrawHill: The company was founded by Harold McGraw and James McGraw. Terry McGraw took over as CEO between 1998 and 2013, the company since than has experienced a 206% growth.

Flops of the Fortune 500

In some cases, a failing bloodline CEO is replaced while the family is retained on the governing board. The new CEO either redefines the company or is replaced if the family wants control back. First on our list is:

1. Walmart: This was founded by Sam Walton, he was CEO and chairman. H Lee Scot was ousted from CEO position and take over by Michael Duke who is the present CEO. The current chairman is S. Robson Walton, the son of the founder. Under his tenure, the company has grown by 462%.

2. Ford: Henry Ford founded Ford Automobile. Henry Ford the second and William C Ford the Nephew were both former CEOs. Presently Alan Mulally is the current CEO with William C. Ford as chairman. The company has experienced 59% growth between 2006 and 2013.

3. Nordstrom: This was founded by John W. Nordstrom. He was the great grandfather. The company was later taken over by Everett Nordstrom, the grandfather and the Bruce Nordstrom the former CEO. Between 2000 and 2013, the company has grown by 329%, thanks to the current CEO, Blake Nordstrom.

Self Made Stars

On the flip side, some CEOs have proven that they did not need family support to rise to the top.

1. Larry Ellison (Oracle Technology): He was adopted by his parents, had no family connections or inherited any form of wealth. He grew his company by 17,601% between 1988 and 2013.

2. Howard Schultz (Starbucks Food Service): He was the son of a truck driver and factory worker. During the current CEOs tenure, the company experienced a growth of 206% from 208 and 2013.

3. Seldon Adelson (Las Vegas Sands Corps Entertainment): He was the son of a cab driver in Dorchester, MA. The company became public in 2005 and has since recovered from the recession, but its worth is in the neighborhood of $50 billion. During the present CEOs tenure, the company growth was -0.3%.

After being physically and mentally disabled by a brain tumor, Brandon overcame the odds to regain his health to help his pregnant wife in her fight against stage 3 breast cancer. A couple of years later he launched his blog. Today over 1 million business owners read his blog every month. Read Brandon's inspirational comeback story here.